Section Fraud and Non-Compliance with Laws and R - Standard on Sustainability Assurance ASSA 5000 General Requirements for Sustainability Assurance Engagements - Fraud and Non-Compliance with Laws and Regulations

Fraud and Non-Compliance with Laws and RFraud and Non-Compliance with Laws and Regulations

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Fraud and Non-Compliance with Laws and Regulations

The practitioner shall maintain professional scepticism throughout the engagement, recognising the possibility that a material misstatement due to fraud could exist, notwithstanding the practitioner’s past experience of the honesty and integrity of the entity’s management and those charged with governance. (Ref: Para. A162)
The practitioner shall remain alert to the possibility that procedures performed during the engagement may bring instances of non-compliance or suspected non-compliance with laws and regulations to the practitioner’s attention.
In the absence of identified or suspected non-compliance, the practitioner is not required to perform procedures regarding the entity’s compliance with laws and regulations, other than those set out in paragraphs 65 and 111–112.
If the practitioner identifies fraud or suspected fraud, or instances of non-compliance or suspected non-compliance with laws and regulations, the practitioner shall determine whether law, regulation or relevant ethical requirements: (Ref: Para. A163–A165, A434)
1. Require the practitioner to report to an appropriate authority outside the entity; or
2. Establish responsibilities under which reporting to an appropriate authority outside the entity may be appropriate in the circumstances.